As a noun, collateral means something provided to a lender as a guarantee of repayment. So if you take out a loan or mortgage to buy a car or house, the loan agreement usually states that the car or house …

COLLATERAL definition: property or other assets pledged by a borrower as security for the repayment of a loan. See examples of collateral used in a sentence.

May 16, 2025 · What Is Collateral? Collateral is a valuable asset that a borrower pledges as security for a loan, serving thus as a guarantee for the lender.

collateral adjective (FINANCIAL) [ before noun ] relating to financial collateral (= valuable property owned by someone who wants to borrow money, that they agree will become the property of the …

Definition of collateral noun from the Oxford Advanced Learner's Dictionary. property or something valuable that you promise to give to somebody if you cannot pay back money that you borrow. We …

Define collateral. collateral synonyms, collateral pronunciation, collateral translation, English dictionary definition of collateral. adj. 1. Situated or running side by side; parallel. 2. Coinciding in tendency or …

It's what you promise to give someone if you don't repay a loan, like the car you put up as collateral when you take a loan out from the bank. As an adjective, collateral can refer to something indirect or …

Collateral is money or property which is used as a guarantee that someone will repay a loan.

Dec 18, 2025 · When a lender accepts a type of collateral for a loan, they typically file a lien against the asset. That means they make a formal legal claim on the asset. Once a lien is applied against your...

Collateral is something, a possession, that the borrower pledges as security when taking out a new loan. If that person defaults, i.e., fails to pay back the money, the lender can seize that item.